Sentry Technology Receives $400,000 Order For

OperationalVideo™ Installations

Ronkonkoma, New York, February 25, 2008 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today, the receipt of an order for approximately $400,000 for the installation of OperationalVideo™ from a privately held, Gulf Coast area retailer. OperationalVideo™ delivers real-time images over the internet using Sentry’s digital video server, OVportal™ software and CCTV cameras to help control safety and security as well as remote viewing of store operations, merchandising, signage, displays, pricing and employee procedure compliance.

Retail managers have access to all store operations from the home office, regional offices and any fixed or mobile location equipped with an internet connection. Video is managed via the SentryVision^® Server, a network device that provides real-time remote viewing and user passwords to manage hierarchal control of the system.

“Following a test in six locations, our customer is rolling out OperationalVideo™ to the balance of its stores,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “The success of the first installations provided the data to prove the quick return on investment in OperationalVideo™. This is the third of our initial group of OperationalVideo™ customers that has installed additional sites following market testing. We are very encouraged with customer acceptance of this important new product line for Sentry.”

Sentry designs, manufactures, sells and installs a complete line of Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The CCTV product line features SentryVisionâ, SmartTrack™, a proprietary, patented traveling Surveillance System. The Company’s products are used by libraries to secure inventory and improve operating efficiency, by retailers to deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. For further information, please visit our website at www.sentrytechnology.com.

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This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings.